FY 2027 Adopted Budget Notes

Budget notes are a key part of the County's budget process. Budget notes may:

• document Board discussions and decisions,
• request future policy discussion,
• highlight areas for in-depth exploration during the year,
• earmark General Fund contingency for future investments, or
• give departments direction in how to achieve the Board’s policy goals during the year.

Sheriff’s Office Post Factor Study

The 2025 Grand Jury Report identified as the number one report recommendation updating and commissioning a Multnomah County Sheriff's Office (MCSO) post-factor staffing study. The last staffing study was completed in 2006, leaving the County without a modern assessment of what is needed today. 

The Sheriff's Office has been impacted by years-long staffing shortages due to compounding factors including retirements, maintaining aging facilities, additional regulations and training requirements, and transport and security requirements that continue to affect operations at both Multnomah County Jails - Inverness and the Detention Center. The resulting impacts are unsustainable and untenable. Overly relying on mandatory overtime to fill staffing gaps, closing and limiting booking, reducing or closing dorms that impact adults in custody by limiting out-of-cell time, limiting visitation and time with legal counsel, and canceled hearings due to transport delays all negatively impact the justice system and community safety.

This budget note builds on efforts to increase recruitment and retention and track overall staffing, by requesting that the Sheriff's Office commission a comprehensive, post-factor staffing study that evaluates MCSO organizational structure, including staffing, operations, and workload demands to provide insight, guidance, and recommendations on performing critical functions and providing core services.

The Board requests this study by January 31, 2027.

Sobering and Crisis Stabilization Center

It is the policy of the Board that an in-depth study of concerns with utilization, operating budget & revenue, care coordination for the Sobering and Crisis Stabilization Center (SCSC) be conducted, and that programming & operation plans are developed to ensure that behavioral health and SUD services to be provided at the Sobering Center are in accordance with community needs, best practices, gaps analysis and emerging trends.

This policy goal can be achieved by establishing a workgroup to provide an in-depth analysis and briefing on Utilization, Operating Budget & Revenue, Care Coordination, including:

Utilization:

• Updated utilization estimates from law enforcement and first responders
• Engages partners to increase utilization by referral or walk-in
• Evaluate the types of services needed to increase utilization

Operating Budget & Revenue:

• Draft budget for expenses, revenue and cost recovery
• Explore strategies to increase operating funding and ensure sustainability

Care Coordination

• Which services do we plan to offer on site day one
• What are the service gaps at SCSC and which partners will fill the gaps
• Which organizations are our “hand-off” after sobering and detox, and how are we ensuring a seamless transition.

The Board requests that the Health Department develop a project plan by the end of October 2026 that includes timelines and deliverables, including composition of the workgroup. 

Expand Behavioral Health Services

It is the policy of the Board that the County Health Department explores ways of increasing its provision of behavioral health services. This policy goal can be achieved by the Health Department collaborating with Federally Qualified Health Centers (FQHCs) and/or the county becoming Certified Community Behavioral Health Clinic (CCBHC) with the focus of expanding billing capacity and maximizing reimbursement rates. A report is requested by December 1, 2026.

ADA Compliance

It is the policy of the Board that the County takes steps to improve ADA compliance countywide. This policy objective can be achieved by Office of Diversity and Equity (ODE) and Central Human Resources (HR) collaborating to improve ADA compliance countywide through standardizing ADA processes and ensuring compliance with the law. The Board requests that ODE & HR report back to the Board in 4 month intervals on progress towards this policy objective.

Cook Plaza

The County purchased Cook Plaza for $3 million, and an additional $1.6 million was appropriated for improvements in the building by the Commission on April 30th, 2026. The Commission has decided not to use the building for delivering homeless services. 

Currently, the use is slated to be for emergency sheltering during extreme weather events or other emergencies. As the Commission recently approved increasing the appropriation by $1.6 million in federal Housing and Urban Development (HUD) funds for the Capital Improvement Fund, questions were raised about the effective use of funds and the building, a County asset. Based on conversations with County staff, there are uses being contemplated that are outside of extreme weather events or other emergencies for the building. 

This budget note requests recommendations from staff, including the Department of County Assets, Office of Emergency Management, and the Homeless Services Department by December 31, 2026 to the Commission on additional potential uses of the building. 

Permanent Supportive Housing

Permanent Supportive Housing (PSH) is a national best practice and an evidence based model proven to serve people experiencing chronic homelessness. Service providers and landlords who serve this population operate PSH programs, and in recent years have explored the development of new PSH services in order to better serve their clients. However, few to none of the PSH programs in Multnomah County are funded or designed to operate to fidelity.

This budget note requests the Chair to direct the Chief Operating Officer to do an inventory of Permanent Supportive Housing programs operated or contracted by Multnomah County and a fidelity review. The Board requests an analysis of each program, comparing services offered to the Pathways Housing First or Substance Abuse and Mental Health Services Administration (SAHMSA) PSH Fidelity Scale (scale to be determined through conversations with Healthshare, social service providers currently administering PSH services contracted by Multnomah County, the Behavioral Health Division, and the Homeless Response System (HRS). The Board requests that the Chief Operating Officer provide a report to the board no later than December, 2026.

In addition, the Board requests an analysis from Homeless Response System (HRS) and Homeless Services Department (HSD) to identify contractual and service delivery changes needed in order for the eligible service portion of PSH to be eligible for Medicaid match. This should include but is not limited to case management services, care coordination, personal support services, job coaching, and person centered planning.

The data and recommendations from the “Roadmap for Permanent Supportive Housing” Program Budget Note that is produced by January 15, 2027 will be updated based on the outcomes of this budget note and any costs needed to reach PSH fidelity.

County Fleet Decarbonization

Multnomah County is dedicated to decarbonizing County operations, including fleet vehicles. While the motivation for fleet vehicle decarbonization is to reduce greenhouse gas emissions and improve air quality, investing in electric vehicles may also lower operational costs and allow the County to better forecast fueling expenses; electricity is closely regulated and less volatile compared to gasoline and diesel fuel prices.

It is the policy of the County Commission that departments first consider battery electric vehicles when replacing or purchasing vehicles. By February 2027 the Commission requests a presentation on this draft policy and requests that the presentation surface any additional challenges and potential solutions for battery electric vehicle adoption. The presentation should include the unique vehicle requirements of each department.

Building on the work being done with the construction of our libraries and using knowledge gained from implementation of Countywide Amendment 18 to install electric vehicle charging at the Juvenile Justice Complex, this report will also include a recommendation for installing additional charging stations to support the County's work to electrify County and County-partner fleet vehicles.

Case Manager Access to HMIS

This budget note requests that the Chair work with the COO to ensure that County Department of Human Services case manager assistants, where appropriate for the position, have the ability to look up clients in HMIS in order to do care coordination for clients being served by December 31st, 2026. 

Victim Services Programs

Over the years, Multnomah County has funded programs that provide victim advocacy and support. These investments are spread across multiple departments in programs, frontline staff, and contracted services with providers. Because this work lives throughout the enterprise and has experienced various phases of coordination, our victim advocacy and support programs may have duplicative efforts, unaligned approaches, or cost inefficiencies. During a deficit year, it is imperative we track all related efforts to identify gaps or better service delivery models.

By December 31st, 2026 it is requested that the Chair direct the Chief Operating Officer, in coordination with the Health Department, Department of County Human Services, Homeless Services Department, Department of Community Justice, the District Attorney’s office and the Sheriff's Office, to coordinate a shared report to identify all costs associated with victim services programs, FTEs, and contracted services. The Board requests that these reports include cost breakdown, outcomes, objectives, and duration/length of the program along with when in the process these programs engage with victims. 

Track Number of Beds

It is the policy of the Board that the County tracks and records from relevant County contractors the following that are available to residents of Multnomah County: 

• Number of detox/withdrawal management beds;
• Number of inpatient treatment beds;
• Number of intensive outpatient treatment beds;
• Number of non-intensive outpatient treatment beds;
• Number of recovery housing beds;
  • Delineating the number of each type (Oxford v. NARR) and level (1, 2, 3, etc.) of recovery housing

1. Where appropriate, the County will track and record:

• How many beds, on average, were used and how many were available/empty per day;
• How many individuals were in a waitlist, queue, or similar, per day;
• Delineate whether and how many beds are available to manage category/quadrant 4 (most acute) co-occurring disorders (CODs) (SUD and SPMI);
• Whether the beds provide services that have the potential to bill Medicaid;
• Whether the beds are billing Medicaid;
• If the beds are paid for by the County;
• If beds are available to residents at low or no cost;
• If and how beds are focused to be available to individuals at certain stages of recovery (Ex: Recovery housing exclusively for individuals who have just completed treatment and are homeless)
• If and how the beds are connected to the County’s Behavioral Health system or Homeless Services Department system. (Ex: Case workers contracted by the County refer individuals to these beds)
• Where individuals come from when using the beds;
• Where individuals exit to after using the beds;
• Whether the data is derived from real data, estimated, self-reported from participants, verified about participants; or other relevant information regarding data source;
• Bed provider observations on where the continuum of behavioral health and homeless services is short in resource, adequate, or in excess compared to need.

This policy goal can be achieved by requiring providers that contract with the County to provide this data. The data will be collected, compiled, and presented to the Board on an ongoing basis every 6 months. Specific items to be tracked and presented on can be adjusted in coordination with the Board.

2. It is the policy of the Board that the County tracks and records from relevant providers who do not contract with the County the following that are available to residents of Multnomah County:

• Number of detox/withdrawal management beds;
• Number of inpatient treatment beds;
• Number of intensive outpatient treatment beds;
• Number of non-intensive outpatient treatment beds;
• Number of recovery housing beds;
  • Delineating the number of each type (Oxford v. NARR) and level (1, 2, 3, etc.) of recovery housing

It is important to recognize, however, that absent a contractual relationship, organizations may not be obligated to provide all the requested information to the County. In those cases, the county makes its best effort to work with those organizations to obtain the information.

Where appropriate, the County will track and record:

• How many beds, on average, were used and how many were available/empty per day;
• Delineate whether and how many beds are available to manage category/quadrant 4 (most acute) co-occurring disorders (CODs) (SUD and SPMI);
• If beds are available to residents at low or no cost;
• Bed provider observations on where the continuum of behavioral health and homeless services is short in resource, adequate, or in excess compared to need.

This policy goal can be achieved by requesting non-contracted providers to provide this data and GR advocating for a statewide registry of providers of these services. The Board requests that data will be collected, compiled, and presented to the Board on an ongoing basis every 6 months. 

This report is intended to be iterative over time, gathering additional information and providers over time.

Plan for Halsey Main Street Project

The Board of County Commissioners requests a comprehensive financial and implementation strategy for the Halsey Main Street Project.

Following the Board’s adoption of Resolution R.2 approving the Main Streets on Halsey Street Design Plan, and acknowledging the parallel adoptions by the City Councils of Fairview, Wood Village, and Troutdale, the County requires a formalized strategy to transition this shared, multi-jurisdictional vision into its next phase of development.

The financial strategy should outline potential funding mechanisms, grant opportunities (building upon the initial Transportation Growth Management Grant), and cost-sharing models with jurisdictional partners to support the envisioned safety, beautification, and pedestrian and bicycle-friendly infrastructure improvements along the three-mile stretch of NE Halsey Street.

The Board of County Commissioners requests findings and the proposed financial strategy during a regularly scheduled board briefing on or before September 30, 2026.

Health Insurance for Preschool for All Providers

This budget note requests the Chair direct the Department of County Management (DCM) to explore options to reduce Health Insurance costs for Preschool for All (PFA) providers in order to reduce overall personnel costs in PFA rates. The Board requests a report from DCM regarding options including but not limited to pooled insurance, association health plan, and PFA providers joining existing professional employee benefits association (EBA). The goal is to lower health care costs for PFA providers, which will reduce the cost of providing preschool to all 3-4 year olds in Multnomah County. A report back to the Board is requested before March 30, 2027.

True Cost of Care Cost Study for Preschool for All

It is the intent of the Board to ensure Preschool for All rates cover true operating costs for PFA preschool classrooms. To that end, the Board requests a report that provides findings from Preschool and Early Learning (PEL) on the True Cost of Care Cost (TCOC) Study and compares this study to the FY27 PFA rates. This information will inform the Board regarding the sufficiency of the FY27 provider rates and whether these rates need to be adjusted due to new information from TCOC Study. The Board requests a report before November 2026.

Standardize Contracting with Community Based Organizations

This budget note requests the Chair to direct the Chief Operating Officer and Finance and Risk Management (FRM) to work with departments to identify places where multiple divisions and departments are contracting with the same Community Based Organization (CBO). They will identify opportunities to reduce administrative burden to the CBO while unifying their experience when doing business with the County. The aim is to resolve persistent issues stemming from fragmented interactions by offering a centralized organizational perspective. For example, in contract administration we can further standardize contracting processes and supplier support. The goal of this budget note is to reduce the administrative burden on CBOs and County staff where feasible that occurs under the current structure. 

Action Plan for Improved Budget Processes recommended by CBAC

This budget note requests the Chair to direct the Chief Operating Officer and Office of Community Involvement (OCI) to integrate improved processes for the FY 28 budget cycle taken from all recommendations in FY27 budget department Community Budget Advisory Committee (CBAC) letters in the cycle and continue to pilot and evaluate year round recruitment and activation of the CBACs as recommended by the Central CBAC.

OCI will work with the budget director to redesign and standardized a departmental CBAC letter template and CBAC presentation slides to include, at a minimum:

• CBAC preferred buy backs in the priority order as determined by the CBACs of the previous year like DCJ’s CBAC recommending Program Offer 50064: Juvenile Culturally Responsive Youth and Family Treatment Services.

Continuum of Employment Services

This budget note requests the Chair to direct the Homeless Response System (HRS), to convene Homeless Services Department (HSD) funded employment service providers to discuss how they can create a true continuum of employment services to support people moving from low barrier to internships/apprenticeships and permanent employment opportunities. This work will be reported by December 31st, 2026. The goal is to provide a cohesive pathway to securing employment that would allow people to become financially self-sufficient while also deduplicating work across providers and creating efficiencies in the homeless services employment ecosystem. In addition, the employment programs will develop concrete outcome measures that include, but are not limited to, # of people securing long term/permanent employment.

Furthermore, the Board requests that COO and HRS will convene a workforce investment table with DCHS, DCJ, HSD, MCSO, HD, DCM, and cities in Multnomah County that fund employment programs to discuss workforce investments, examine outcomes of existing programs, and design outcome goals that include, but are not limited to, clients gaining long term/permanent employment. They will recommend opportunities to create efficiencies in contracting and in duplicative County administrative functions. A board briefing is requested from the COO by December 31st, 2026.

Affordability Index

This budget note requests development of an affordability index by the Chief Financial Officer. The development of an affordability index will also consider factors, including – but not limited to – the affordability of:

• Rent/mortgage
• Food
• Utilities
• Child care
• Transportation
• Health Care
• Education

Enterprise Contract Management System - Performance Outcomes

Prior to the Fiscal Year 2028 Budget introduction, the County will ensure that its enterprise contract management (ECM) system will have a functional ECM tool for storing contract deliverables or performance outcomes and County contract managers will utilize this tool for contracts so that contracts can be actively monitored and performance managed.  

The contracts and performance evaluations should be available for internal and external review. Reporting should be tracked in consistent formats within a singular system that tracks deliverables and impacts of contract performance that evaluates contract and management performance.  The outcomes and service delivery impacts from contracted services should be monitored with ongoing contract performance management and oversight and quarterly reporting to the Commission.

Comprehensive Assessment of Investments and Service Delivery in East Multnomah County

It is the policy of the Board of County Commissioners that we strive to achieve our mission “to improve the well-being of those in Multnomah County by providing accessible, high-quality, and innovative public services that create stability, enhance opportunities, and reduce disparities.” The disparities that exist in East Multnomah County are long-standing and well documented. From wages to educational outcomes to life expectancy, substandard outcomes persist. 

Accountability requires us to explore and address these chronic inequities. To provide the level of service that enhances opportunity, creates stability, and reduces critical disparities in East Multnomah County, we must understand the current level of service and investment in recent years. This allows us to identify what’s working, what’s missing, and what level of service is appropriate to improve wellbeing in alignment with the County’s Strategic Plan and in service to the people of Multnomah County. 

To further this policy, the Board of County Commissioners requests an analysis of Multnomah County investments and services delivered specifically to District 4 in East County. The analysis should:

• Report the investment in dollars directed to East County by each department over the last 5 years.
• Report the type and quantity of services delivered to East County by each department over the last 5 years.
• Identify reliable baseline measures of health and wellbeing indicators that can be reproduced each year to track progress.

The Board requests a written report by December 2026 with a Board briefing by January 2027.

When every community member, regardless of their zip code, has equitable access to the resources required to thrive, the stability and economic vitality of Multnomah County as a whole is strengthened. 

County Data Strategy

It is the policy of the Board that the County have reliable and transparent data and outcomes to understand how our services are performing for our communities. Multnomah County has made meaningful investments in data and reporting across several divisions, and this budget note seeks to build on that foundation - aligning, accelerating, and scaling what works while addressing gaps. To continuously evaluate and improve County services, as well as support informed decision making by leaders, Multnomah County must streamline systems, prioritize investments in governing and managing data, and improve data quality and coverage. Equally important, the County must improve its ability to share data among divisions, departments, external partners, and the communities we serve. Without steady and sustained attention to modernizing our data systems and governance – as well as ensuring data is part of our everyday operational rhythms – we risk opportunities to improve efficiency and outcomes for the people we serve. 

To further that goal, the Board requests that the Chair direct the Office of the Chief Operating Officer to evaluate and update County processes, including these efforts to: 

• Develop a Strategic Plan-aligned “Impact-on-Outcomes” dashboard, and associated program offer. The dashboard would connect expected program offer performance to Strategic Plan goals and metrics to inform the FY28 budget process and improve budget decision-making.
• Review and update the County Data Strategy to set a vision for data use in a high-performing organization and appropriately govern how data will be collected, shared, protected, and used for decision-making. This effort should also address data quality standards, interoperability across County systems, and governance frameworks for the responsible use decision-making tools.
• Identify and document the human and capital resource needs required over the next 3-5 years to become a transparent, data-driven organization including investments in data literacy, workforce development, and the specialized technical talent required to sustain these capabilities in support of Strategic Plan Focus Area 4 “Be Accountable, Collaborative, and Transparent” and Focus Area 5 “Improve Operational Excellence” to further the broader County mission and mature our existing data capabilities.
• Deliver a 3-5 year tactical roadmap outlining achievable actions that move us closer to the County Data Strategy with measurable milestones, accountable owners, and identified dependencies on technology modernization efforts already underway.
• Brief the Board on these operational deliverables and any related capital projects such that the Board may make informed budgetary decisions.

Gresham Holding Facility Assessment

The Multnomah County Board of Commissioners requests that the Multnomah County Sheriff's Office (MCSO) partner with the Gresham Police Department to assess the operational and financial feasibility of reopening the holding facility at the Gresham Police Headquarters. This assessment will note the operational efficiencies gained by eliminating the need to transport East County detainees downtown, including officer turnaround times and public safety presence in East County. 

MCSO is requested to provide its findings and recommendations to the Board of County Commissioners by November 15, 2026.

Library Capital Bond Remaining Balance

There is a remaining approximately $20 million taxable balance in the Library Capital Bond after all projects have been completed. The Library Capital Bond Program Management Office (PMO) has recommended continuing to approve uses of contingency funds within the established projects and for previously earmarked and approved items. PMO leadership follows an established process to evaluate and request approval from Library Capital Bond Project Executive Sponsors for the use of released contingency funds in alignment with established criteria. 

The Multnomah County Commission, acting as the Library District, requests the established criteria from PMO, an analysis of current and forecasted spend, current risk projections, and project needs, and further requests the Department of County Assets and Chief Financial Officer put forward recommended uses of anticipated final surplus savings by August that align with the bond ballot title to the Library District by August 14, 2026.

District Attorney’s Office Data Reporting

The County Commission requests the District Attorney’s Office will provide quarterly updates to the Board of County Commissioners and the Local Public Safety Coordinating Council (LPSCC) regarding strategic prosecution activities, emerging crime trends, restorative justice engagement, and coordinated response efforts.

Updates may include information related to crime patterns, prosecution strategies, referrals to restorative justice programs, cross-agency coordination, and outcomes associated with high-impact offenses such as auto theft, burglary, robbery, and other emerging public safety concerns.

The intent of this reporting is to support transparency, strengthen coordination across the public safety system, and ensure strategic prosecution efforts remain responsive and adaptable to changing community conditions and crime trends. 

Additional data analysis on other aspects related to the DA's Office is also requested, including SB 819 requests received and approval/denials; expungement motions received and approvals/denials; case referral trends, by crime type; time to case disposition trends; number of cases in Aid and Assist status; case dismissal rates and reasons, including proximity to scheduled trial date (both felony and misdemeanor); and misdemeanor trial outcomes, separated by person and non-person. 

This will be complementary to the data work of LPSCC.

Gateway Center Evaluation

The Domestic and Sexual Violence Coordination Office (DSVCO) and Gateway Center are currently working with a neutral party to support the evaluation of Gateway services. This work includes listening sessions and engagement with survivors, community-based providers, and system partners to assess current services, identify strengths and gaps, and inform any future modifications to service delivery. The findings and recommendations from this process are intended to guide future planning and ensure services remain responsive to community needs. This budget note requests that the Chair instruct the Department of County Human Services to complete this evaluation process and provide a presentation and briefing to the Board and the Local Public Safety Coordinating Council summarizing findings, recommendations, and proposed next steps no later than January 2027. 

SUN School System Funding Assessment

Due to one-time-only funding, it is critical that we assess the SUN school system and funding, look for opportunities to create efficiencies and leverage funds from partners that also support this system.

This budget note requests that the Chair instruct the COO and DCHS, by January 2027, to report back to the board in a briefing, the following:

• All program offers that fund or leverage resources for SUN school programs
• Any matching funds and sources that providers use to run SUN programs
• Opportunities for efficiencies, including but not limited to, using catchment areas instead of school specific programs.
• Work with PPS to align FY28 funding and programs with school closure plans of PPS
• Progress made towards conversations with all SUN funders to create a funding plan across all schools that considers equity, population, and planned school closures outside of PPS and next steps. 

DCHS commits to working with SUN funders to create options for funding strategies with a more comprehensive plan to gather community, provider, school districts and City partner input to proposed options to the board on or before June 30, 2027. We can provide regular updates in FY28 as well. 

Shared Set of Definitions Used when Serving Individuals and Families Experiencing Homelessness

During the FY 2026 budget process, the Board adopted the Consistency of Data for Homelessness work budget note, which requested a report that outlined basic data elements in the homeless service system across the enterprise. This report confirmed that programs do not all measure the same outcomes making it impossible to conduct assessments on the effectiveness of these investments or replicate successful outcomes.

By December 31, 2026, it is requested that the Chair direct the Chief Operating Officer, in coordination with the Health Department, Department of County Human Services, Homeless Services Department, Department of Community Justice, and the Sheriff's Office, to coordinate a shared set of definitions commonly used when serving individuals and families experiencing homelessness. This work will be led by HSD and use national definitions where available. Programs or Services that are legally mandated to use standardized terms and definitions would not need to alter the definitions of those terms

Examples of terms that will be included, at a minimum:

• Permanent housing
• Eviction prevention
• Rent assistance
• Rapid Rehousing
• Permanent Supportive Housing
• Transitional Housing
• Shelter
• Outreach
• Inreach

Homeless Response System Evaluation

This budget note requests the Chair to direct the Chief Operating Officer (COO), Homeless Response System (HRS), Homeless Services Department (HSD), and relevant HRS partners to evaluate opportunities to improve coordination, reduce duplication, and clarify operational responsibilities between all Multnomah County Cities and Multnomah County regarding homelessness response, shelter operations, outreach, and public environment management.

The review should include:

• an assessment of overlapping operational responsibilities between City of Portland and County homelessness systems;
• an assessment of overlapping operational responsibilities between the Cities of Troutdale, Fairview, Gresham, Maywood Park, Wood Village and County homelessness systems
• an evaluation of current contract management and goals;
• a feasibility analysis for transitioning certain City of Portland shelter operations or shelter administration functions to regional or County-led coordination structures;
• Discuss lessons learned from FY27 City of Portland and Multnomah County shelter closures and create strategies to preserve continuity of shelter access and participant services during any future operational transitions;
• recommendations for prioritizing Cities resources, within their Housing Production Strategy, toward upstream homelessness prevention, such as affordable housing preservation, stabilization and acquisition.
• and a timeline completed by December 1, 2026 for review before development of the FY28 Proposed Budget.

The intent of this budget note is to clarify the roles in the homelessness response system and ensure that resources are not duplicating homelessness management infrastructure while underinvesting in housing stabilization and exits to permanent housing.

Earmark $1 million of Homeless Services Department Capital Funds for North Portland Day Center

This budget note requests that the Chair move $1,000,000 from PO 78243 HSD capital funds into DCA Capital Contingency for a new space for the North Portland day center that is larger than 800 sq. feet, has emergency exit(s), and is able to have a higher capacity than the current location. A new day center will be large enough to provide the full range of services that other County funded day centers have. Once a location is found, these funds will be used for the new North Portland day center site.

Roadmap for Permanent Supportive Housing Program

The County Commission requests a roadmap for how the County proposes to move forward building, maintaining and operating the County Permanent Supportive Housing (PSH) Program.

As part of the Permanent Supportive Housing Roadmap, the County Commission requests a projection of: 

• The current ongoing PSH costs, including disaggregating by project-based and voucher-based housing.
• The cost of providing PSH to the total population projected to need Permanent Supportive Housing, including disaggregating by project-based and voucher-based housing.
• The current and projected 5-year cost per unit (for project-based) and per voucher, supplying both the average amount for each and make available the cost for each of the current PSH units and vouchers.
• A proposed redesign of how the County contracts and delivers PSH support services in order to qualify for Medicaid match.  

The data and recommendations from this budget note will be updated based on the outcomes of this budget note and any costs needed to reach PSH fidelity as listed in the “Permanent Supportive Housing” Budget Note and provide recommendations to decrease County costs to support a sustainable Permanent Supportive Housing Program by December 31, 2026.

Enhancements to Street Cleaning Corridor for 82nd Avenue

Along and near the 82nd Avenue corridor are a number of sites the County and community-based providers operate to serve the community, including health and human services, and shelters. As well, neighborhoods and businesses are co-located along this highly used and shared corridor, resulting in increased waste and biohazards.  

The County Commission requests a proposal to add enhancements to the street cleaning corridor through the City of Portland for 82nd Avenue by October 15, 2026, similar to the model for the Gateway Management District, that provides opportunity for leveraging existing service and prioritizes a provider of services who has experience with East Portland and its neighbors.

This Budget Note earmarks $150,000 in General Fund Contingency

Report of Leadership Protective Detail

By January 1, 2027 and before additional funds are spent from Program Offer #10000A on the leadership protective detail, the County Commission requests the Director of Workplace Security prepare a report and analysis of the first 18 months of leadership protective detail, the contract terms including the vehicle, and include comparison of other comparable public contracts in the area. The Workplace Security Director is requested to include potential cost savings for those protective security services deemed to be needed and make recommendations.

Administrative Consolidation

It is the policy of the Commission to improve efficiency and effectiveness of centralized functions across the County, including among Non-Departmental Offices, the Department of County Assets, and Department of County Management. Engagement with the Board is requested to begin in August 2026 with a report of recommendations and a Board Work Session by November 2026. Potential adjustments to County Ordinances to consolidate enabling enterprise services may need to occur. 

Active Fiscal and Performance Contract Management

The County spends more than $1 billion annually on contractual services and is responsible for contract performance and fiscal management. There are documented incidents of significant financial non-compliance with County policies and contractual requirements. The County Auditor has made recommendations in both of these areas to improve oversight and management of the County's contractual services to promote financial stewardship when there's non-compliance with County financial policies and not meeting performance metrics.

The County through the Department of County Management (DCM) uses fiscal risk assessment tools for contracts with federal and Supportive Housing Services dollars. Additionally, performance metrics and management are critical to data production for what is working and what is not to invest in programs based on outcomes. The County Commission requests DCM and the Homeless Services Department (HSD) pilot an initiative whereby:

• DCM uses the fiscal risk assessment tool for provider contracts that provide greater than 40% of a particular line of business with a single provider, when said contract exceeds $1 million, per County resolution 08-112.
• For provider contracts deemed high-risk fiscally or based on performance, put a documented plan in place shared with the service provider that includes the timeline and expectations for continuous monitoring. 
• DCM will develop recommended financial policy language detailing how to mitigate risk for high-risk contract providers. 
• HSD will articulate the process for establishing provider performance measures and how the performance measures ensure fairness among providers, as referenced on p. 7 of the February 2025 "JOHS Audit Status Evaluation."
• HSD will continue to analyze provider contracts for performance metrics that are not being met using the contract monitoring dashboard and in accordance with HSD contract performance monitoring policies and procedures.
• HSD will develop a process to conduct detailed invoice review for certain instances where a provider has been identified as fiscally high-risk. 
• HSD and DCM will provide the Commission with reports every 6 months, with the inaugural report timed with this budget note, with de-identified information for providers determined to be high-risk and what makes them high-risk, for either performance or fiscal concerns and the actions HSD and DCM have taken to mitigate risk and ensure performance and fiscal accountability.
• Document strategies HSD uses to ensure a balanced approach between program staff and program management, as referenced on p. 11 of the February 2025 "JOHS Audit Status Evaluation."

The Commission requests this information via report by February 1, 2027.

Budget Process Accessibility

The County budget is a public document that expresses the prioritization of public dollars and shows the public how the County stewards its funds, and the budget process is the process that the public has to influence the County’s work and programs. It is imperative that the County makes its budget documents accessible and transparent where allowed. 

This budget note requests the Chair to direct the Budget Office and Office of Community Involvement to work with each Multnomah County Department on improving the accessibility and comprehension of Program Offers and relevant budget documents. Moving forward, the county budget should be improved upon to make progress toward full ADA accessibility standards, program offers should be drafted using clear, everyday language aimed at a sixth- to eighth-grade reading level.

At the same time, we recognize that our Budget Office has to balance this goal with strict statutory obligations. The county must still produce a budget that fully complies with Oregon Budget Law, including the specific, technical terminology required by Oregon Revised Statutes (ORS).

Our goal is to bridge that gap. We are committed to working alongside our Budget Office to find innovative ways to meet our legal mandates under state law while improving readability and accessibility for the public. We want to ensure that compliance never stands in the way of community understanding.

An Accessible Budget plan for the FY 2027 budget is requested by October 31, 2026 to be used in the FY 2028 budget process starting with the department requested through the final adopted budget. The Accessible Budget is a companion document to the budgets that will group program offers using intuitive, plain-language categories that reflect community. Categories will be based on lessons learned from website and digital program research on how community members think about grouping services and the words they use to describe County services. 

This could include but is not limited to broad categories like:

• Eviction Prevention
• Shelter
• Housing Placement
• Mental Health
• Addictions
• Public Health
• Etc.

CBO Span of Control 

The County contracts with many Community Based Organizations (CBOs) to conduct safety net programs on behalf of the County. As part of an effort to be a good stewards of public dollars, data collection (e.g. survey process) regarding the span of control for contracted CBO’s of all County funded programs is needed. The County will report back to the Board via briefing in May 2027 and report what was learned. 

Historically, governments, including the County, contracted services to non-profits as a cost saving measure. In addition to the above, this note requests that the Chair will instruct the COO to provide a report outlining a process to discuss which county services should be contracted to nonprofit CBOs and which could be brought into the County, moving direct service provision by County staff and programs. As the County will never be culturally specific, it is important to understand the scope of culturally specific contracts but it is not assumed that these services will be brought into the County for direct service administration. 

Restorative Justice 

Restorative justice offers an alternative pathway outside the criminal legal system where those harmed and those responsible for the harm can reach resolution and achieve survivor centered, defined accountability. Our criminal legal system needs to evolve to a tool for restorative justice and community safety. 

This budget note requests the Chair to direct the Local Public Safety Coordinating Council (LPSCC) Executive Director to launch a Restorative Justice workgroup including representatives of the District Attorney’s Office, at least 2 representatives from public defense with direct experience in restorative justice, Portland Police Bureau, Gresham Police Department, Multnomah County Sheriff, Multnomah County Department of Community Justice, community based organizations with experience in restorative justice, and individuals with lived experience with restorative justice. The workgroup will: 

• explore the feasibility of implementing and increasing usage of community-based restorative justice programs throughout Multnomah County in a systematic way provide a bi-annual briefing to the board with recommendations that shall: include the mechanism(s) through which restorative justice could be implemented, the estimated utilization rate, populations most likely to benefit from restorative justice, and a potential implementation plan for an effective restorative justice programming. 

The first briefing to the Board of County Commissioners will be due February 2027.